Brazil Chamber of Deputies approves protections for telecommunications fund

The Brazilian Chamber of Deputies has approved Complementary Law Project 230/25, which establishes new rules to protect the Telecommunications Services Universalization Fund (Fust). The measure, passed with 333 votes in favor and 91 against, aims to prevent the freezing or redirection of these funds, ensuring they are used specifically for telecommunications infrastructure and digital inclusion.

Key provisions of the approved text include the extension of the ‘Fust Direto’ mechanism until 2031, allowing telecommunications providers to apply part of their contributions directly to connectivity projects in schools, health units, and remote areas. Additionally, the project extends a five-year benefit that allows companies to receive up to a 50% reduction in Fust contributions if they invest their own resources into authorized programs.

The legislation also seeks to amend the Fiscal Responsibility Law to prevent the limitation of financial movements related to Fust expenses, addressing historical issues of fund underutilization. The proposal now moves to the Federal Senate for further analysis.